A bank provides:
A. liquidity; that is, access to cash when and where you want it.
B. liquidity; that is, it connects buyers to sellers to ease saving and borrowing.
C. risk diversification; that is, access to cash when and where you want it.
D. risk diversification; that is, connecting buyers and sellers to ease saving and borrowing.
A. liquidity; that is, access to cash when and where you want it.
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Open market operations are the
A) purchase or sale of government securities by the Fed. B) lending of reserves to the banking system by the Fed. C) borrowing of reserves by the Fed from the banking system. D) minimum percentage of loans that banks must retain as reserves in the open market. E) purchase or sale of gold by the Fed.
A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show
A) an inverse relationship. B) a negative relationship. C) a direct relationship. D) Both answers A and B are correct.
Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the second ice cream cone?
A) $0 B) $0.50 C) $3.00 D) $5.50
A deficit nation in a fixed exchange rate system can improve its balance of payments by increasing
a. its money supply. b. its interest rates. c. its level of real GDP. d. aggregate demand.